Every once in a while I am still amazed at some of the truly non thinking and non logical “mush” that comes out of the mainstream. While years ago my wife could find me screaming at the television on a regular basis, I have since mellowed and this is a much more rare occasion …until this morning. Maybe being bombarded for years by illogical mainstream pabulum has numbed my senses? One thing is for sure, the public has swallowed it whole!
CNBC had one of their “money experts” on and was talking about the scorecard for January. Did she talk about gold? silver? No, being factually incorrect she was talking about how well the European bourses did! She was incorrect no matter how she tries to rationalize it, in nominal terms or in real terms, let me explain. First, when looked at from “local currency terms, the Russian bourse did far better than anything else …even though it was actually down in terms of gold and silver. The European bourses were at very best down 2%-3% in terms of dollars or gold, some down much further. Because gold was up 8% and silver up 11% versus the dollar and the dollar up against everything else, they were “up” double digits versus most everything on the planet! Of course, you know better than this, everything else was “down” or if you want, you can call it “devalued”. Gold and silver are the unmovable, immutable “yardsticks” that cannot debased, stretched or finagled with because an ounce is always an ounce. Gold and silver do not change, they don’t stretch, they don’t shrink they just “are” and everything else is “valued” against them …even the dollar. Their perceived values can however be “played with” by diluting paper supply but I digress…
Next, CNBC had another guest on who manages some $100+ billion (cringe) of “other peoples money”. He was proudly spouting how much better value U.S. equities were over international equities and actually said with a straight face “there are still some very good values” in the bond markets even though 10 year Treasuries were yielding 1.75%! Really? Seriously?! He went on to suggest that particularly in the municipal sector, “good values” could be found. Then of course we got the standard “disclaimer” that everyone should be “well diversified”.
Did the CNBC announcers ask him where the value is in tying up money for 10 years at 1.75%? You of course understand the problem, where is the upside? Will interest rates still be at these ridiculous levels in 10 years? Lower? Higher? 10 years is a very long time, it used to be more than two average business cycles. Now, the amount of “events” occurring in one year probably dwarf what used to be notable in 10 or even 20 years. The problem is this, “notable” events in today’s world, happen so often that its become the new normal and eyebrows no longer are raised for anything unless its “politically incorrect” …THEN there’s a problem!
Switching gears just a bit but still connected to these mainstream thoughts, all of this is about “fraud”. The U.S. way of life has gone from hard work and savings to cutting corners and borrowing. The fraud goes from top to bottom and starts with our money itself. Lie after lie about our economic and financial conditions have piled one on top of the other since 2008 and long before. You name the report, inflation (and thus real GDP), unemployment, housing, consumption or production …they are about the only thing we “manufacture” any more in the U.S.. Markets are rigged, manipulated and forced in contorted directions to confirm the lies fed to the public… and continually reaffirmed by the clueless “mainstream mushers”.
Are these mouthpieces lying? I really don’t think they intentionally are. I truly believe that THEY believe what they are saying. They hear other people say the same things over and over again with the reaction being applause …and who doesn’t like applause? They hear “official” reports, which don’t make sense to a mildly intelligent monkey yet they never question anything. Never mind the fact that their grocery bills jumped 15% or more last year, never mind their own eyes when they open a tax, tuition or insurance bill. No what “it” is, it is good! Crashing oil was good for the economy over the last weeks …this week rising oil shows how strong it is! It’s all good!
I am here to tell you No!, it is not. We are being lied to, manipulated and used. Fraud encompasses nearly all aspects of our daily life. Even those who understand this concept are not fully aware of how deep this goes because we have all been numbed down to the point where what used to be “crazy” is now a normal as picking up the morning paper. Make no mistake, the fraud will be uncovered as it always is once credit begins to contract in earnest.
Right now, you are being given a God given opportunity to avoid being aboard the coming disaster. History has already shown you what happens after markets become as volatile as they are currently, you still have the chance to not just change your deck chair but to exit the vessel. Do we know exactly what the event or events will be that ignite the fuse? No, but it will be truly obvious only after the fact. What we do know is the world is now more indebted, many times over than ever before in history. We know that sovereign governments will fail this time around because even they “joined the party” (to keep the party and the fraud) going.
Never before this era has the world been entirely off of the gold standard. Another first is the fact that interest rates have never ever been as low as they are. Fake money and too much debt in reality equals massive “risk”. In today’s capital markets, there is almost ZERO compensation for this risk. In fact, valuations suggest the current situation is THE most “risk free” period of time in financial history!
The “fraud” as I call it being perpetrated on you, on the entire world can be broken down to these two main themes. More “real” risk for our economies, financial systems, ways of life and lives themselves has never been greater. The trick, to keep this going is to “show” the reverse, to portray “less risk” than ever before. As I stated yesterday, your job, your mission, your immediate actions should be very defined at this point. Get out of the way! Don’t play the game! Do Not Own Assets that can, and certainly will DEFAULT! Gold and silver are the very core assets and the only “money” that cannot nor ever will default. WAKE UP! Act for yourself. Grab your non believing, your in denial, your non understanding friends and relatives …and SHAKE THEM! WAKE THEM UP! Tell them to use the common sense that was God given yet “fraudulently” stolen from them slowly over time. No one ever can tell you exactly “when” fraud will be uncovered, they can however tell you with absolute certainty that it will be.